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ADC buys laser maker
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May 5, 2000: 4:07 a.m. ET
U.S. telecom systems maker buys privately held Altitun for $872M in stock
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LONDON (CNNfn) - ADC Telecommunications, a U.S. provider of network systems to accelerate the transmission of voice and data, agreed Friday to purchase Swedish laser maker Altitun for about $872 million.
Minneapolis-based ADC (ADCT: Research, Estimates), whose customers include regional U.S. telephone companies, has been gearing up for global expansion. The purchase is the biggest of five the company has made in the laser systems segment of its business over the past several years. It is fresh off the $1.9 billion acquisition of high-speed data systems firm PairGain Technologies.
ADC said it expected to take an undetermined one-time charge for buyout-related expenses. Not including that charge, ADC expects the deal to reduce earnings by about 8 cents a share in its 2000 and 2001 fiscal years, but then add to earnings.
Altitun is a pioneer in variable-wavelength, or tunable lasers, which enable the delivery of high-speed, broadband communications via fiber-optic networks at greater capacities than most systems currently allow. Its systems help phone companies cut their network costs.
The all-stock deal is expected to be completed during the next few weeks and is intended to be accounted for as a pooling of interests. ADC said it would not transfer any Altitun operations away from Sweden.
ADC shares, which are included in the Nasdaq-100 index, fell 1-1/8 to 57-1/4 Thursday. 
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ADC
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